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BOU secretly looked for bidders for Global trust bank reveals Bagyenda

By Alice Bagyenda

The parliamentary committee on Commissions, Statutory Authorities and State Enterprises imposes a travel ban on the embattled former Bank of Uganda (BoU) Executive Director in charge of Supervision for commercial banks Justine Bagyenda.

This was after the committee chairperson also Bugweri county Member of parliament Abdu Katuntu asked Bagyenda to deposit her two passports ( the East African passport and the International) with Parliament until the probe is over.

Bagyenda was apearing before the committee to give evidence on the irregular closure of seven commercial banks after snubbing it two times.

Katuntu notes that her traveling has caused the committee a bit of inconvenience since she is a key witness in the liquidation of three commercial banks following their closure hence she must sit throughout the process and answer all the questions that may arise.

Meanwhile, the circumstances under which Bank of Uganda (BoU) sold assets of closed banks at 93 per cent discount to a now defunct offshore company registered in Mauritius remain unresolved after Bagyenda appeared without any documentation defending the sale.

A forensic audit report by the Auditor General indicates that the total loan portfolio of Shs135b for International Credit Bank, Greenland Bank, and Cooperative Bank which had valid, legal or equitable mortgage and was supported with legal documentation, were sold to Nile River Acquisition Company at a 93 per cent discount.

Bagyenda who first took an oath before the committee says she does not remember the justifications for the decision.

The selling of the loans to Nile River Acquisition Company has become a particular source of interest because the firm was incorporated in Mauritius on September 26, 2007 as a global business, the same year BoU officials sold the assets of the three banks.

The committee was also concerned about why global trust bank was sold on the same day it was closed but Bagyenda said that the bank had secretly looked for the bidders after
realizing that the bank financial status was not good.

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